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R. Stahl AG
Quarterly Report • Nov 12, 2024
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Quarterly Report
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Quarterly Statement 03
This report is available in German and English. Both versions can also be found online on our corporate website www.r-stahl.com under Corporate/Investor Relations/IR News and Publications/Financial Reports. It contains for-ward-looking statements based on assumptions and estimates of R. STAHL's management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.
Alternative performance indicators
The alternative performance indicators EBITDA pre exceptionals and EBITDA margin pre exceptionals that are used in this report are not defined by international accounting standards. R. STAHL uses these indicators to improve the comparability of its business performance over time. EBITDA pre exceptionals is derived from earnings before interest, taxes, depreciation and amortization (EBITDA) less adjustments classified as exceptionals (restructuring charges, non-scheduled depreciation and amortization, charges for design and implementation of IT-projects, M\&A costs, profit and loss from deconsolidation transactions as well as profit and loss from the disposal of noncurrent assets no longer required for business operations). EBITDA margin pre exceptionals describes EBITDA pre exceptionals in percentage of sales.
Rounding differences and rates of change
Percentages and figures in this report may include rounding differences. The sign of the rates of change is based on mathematical considerations: Improvements are marked with "+", deteriorations with "-". Rates of change $>+100 \%$ are shown as $>+100 \%$, rates of change $<-100 \%$ as " $n / a$ " (not applicable).
Quarterly Statement Q3
of R. STAHL Aktiengesellschaft
for the period 1 January through 30 September 2024
CONTENTS
4 Significant events
5 Key figures
6 Group management report
15 Consolidated financial statements
21 Selected explanatory notes
25 Financial calendar and Contact/fmprint
Significant events in the reporting period
Significant events in the reporting period
August 2024 - R. STAHL invests in logistics expansion at Weimar site
R. STAHL invests over $€ 3$ million in a logistics expansion at its Weimar site. By mid-2025, a logistics unit will be built at the site directly adjacent to the administration and production building in accordance with the latest climate standards, providing almost 2,000 square meters of additional space.
September 2024 - R. STAHL concludes in-house collective bargaining agreement with IG Metall Baden-Württemberg for the Weimar site
R. STAHL has now also concluded the future-oriented collective bargaining agreement - concluded between the Works Council and IG Metall BadenWürttemberg at the Waldenburg headquarters in April - for employees at the Weimar site. In addition to safeguarding sites and jobs until 2030, the agreement also stipulates a gradual reduction in weekly working hours to 37 hours.
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Contact/Imprint
Key figures
| € million | 032024 | 032023 | Change in \% | 9M 2024 | 9M 2023 | Change in \% |
|---|---|---|---|---|---|---|
| Sales | 87.4 | 86.0 | $+1.7$ | 261.4 | 240.7 | $+8.6$ |
| Germany | 21.6 | 21.4 | $+0.5$ | 62.1 | 63.1 | $-1.5$ |
| Central region ${ }^{1)}$ | 39.3 | 39.1 | $+0.6$ | 119.9 | 107.2 | $+11.8$ |
| Americas | 10.0 | 9.0 | $+11.7$ | 31.9 | 25.1 | $+27.3$ |
| Asia/Pacific | 16.5 | 16.5 | $+0.3$ | 47.5 | 45.3 | $+4.7$ |
| EBITDA pre exceptionals ${ }^{2)}$ | 8.8 | 13.5 | $-35.0$ | 28.1 | 32.5 | $-13.7$ |
| EBITDA margin pre exceptionals ${ }^{2)}$ | $10.0 \%$ | $15.7 \%$ | $10.7 \%$ | $13.5 \%$ | ||
| EBITDA | 8.7 | 12.9 | $-32.5$ | 27.7 | 31.0 | $-10.9$ |
| EBIT | 4.1 | 8.4 | $-50.8$ | 14.5 | 18.0 | $-19.6$ |
| Net profit | 1.8 | 6.2 | $-70.2$ | 7.7 | 11.9 | $-35.4$ |
| Earnings per share (in €) | 0.28 | 0.96 | $-70.8$ | 1.18 | 1.85 | $-36.2$ |
| Order intake | 74.4 | 82.1 | $-8.4$ | 255.2 | 268.0 | $-4.8$ |
| Order backlog as of 31 September | 107.9 | 132.4 | $-18.5$ | |||
| Cash flow from operating activities | 9.8 | $-0.9$ | n/a | 8.9 | $-0.3$ | n/a |
| Free cash flow | 6.0 | $-4.8$ | n/a | $-1.0$ | $-10.4$ | $+90.6$ |
| Depreciation and amortization | 4.6 | 4.5 | $+2.1$ | 13.2 | 13.0 | $+1.1$ |
| Capital expenditures | 3.8 | 3.8 | $-2.3$ | 9.8 | 10.1 | $-2.3$ |
| 30 Sep. 2024 | 31 Dec. 2023 | Change in \% | ||||
| Balance sheet total | 277.3 | 271.4 | $+2.2$ | |||
| Equity | 74.0 | 67.7 | $+9.3$ | |||
| Equity ratio | 26.7\% | 25.0\% | ||||
| Net financial debt ${ }^{a}$ | 43.6 | 38.8 | $+12.3$ | |||
| Net financial debt incl. lease liabilities | 59.7 | 55.4 | $+7.7$ | |||
| Employees ${ }^{a}$ | 1,781 | 1,721 | $+2.3$ |
1) Africa and Europe without Germany
2) Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for designing and implementing IT projects, M\&A costs, profit and loss from deconsolidation transactions as well as profit and loss from the disposal of assets no longer required for business operations.
3) Without pension provisions and without lease liabilities.
4) Without apprentices
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Group management report
- Sales up $1.7 \%$ in the third quarter of 2024 to $€ 87.4$ million (Q3 2023: $€ 86.0$ million)
- Order intake down year-on-year at $€ 74.4$ million in Q3 2024 (Q3 2024: $€ 82.1$ million)
- EBITDA pre exceptionals decreased by $€ 4.7$ million to $€ 8.8$ million (Q3 2023: € 13.5 million)
- Net profit fell to $€ 1.8$ million (Q3 2023: $€ 6.2$ million). Earnings per share at $€ 0.28$ (Q3 2023: $€ 0.96$ )
- Reduction in working capital leads to a significant increase in cash flow from operating activities; free cash flow improves by $€ 10.8$ million to $€ 6.0$ million (Q3 2023: $€-4.8$ million)
BUSINESS DEVELOPMENT
SALES AND ORDER INTAKE
R. STAHL's business performance in the third quarter of 2024 showed a stable year-on-year sales development. The primary sales drivers included the oil \& gas, marine and pharmaceutical sectors. Compared to the previous year, sales increased by $+1.7 \%$ to $€ 87.4$ million in the third quarter (Q3 2023: € 86.0 million). Despite the increase in the third quarter, there was a $2.1 \%$ decline in sales compared to the second quarter of 2024 (Q2 2024: $€ 89.3$ million). Weaker overall global economic demand played a key role in this development.
R. STAHL achieved positive growth rates in all sales regions in the third quarter of 2024. Compared to previous quarters, however, sales stagnated - with the exception of the Americas region. In Germany, sales increased by $0.5 \%$ to $€ 21.6$ million (Q3 2023: $€ 21.4$ million); key contributions came from the marine and shipping areas.
In the Central region - which consists of Africa and Europe excluding Germany - sales of $€ 39.3$ million were slightly above the level of the previous year (Q3 2023: € 39.1 million). The Americas region contributed to this sales growth with an increase of $11.7 \%$ over the prior-year figure to $€ 10.0$ million (Q3 2023: € 9.0 million). Here, R. STAHL achieved growth in the oil and gas sector. At $€ 16.5$ million, sales in the Asia/Pacific region remained at the level of the previous year (Q3 2023: € 16.5 million). This stable development was mainly driven by the oil and gas industry.
A deteriorating economic outlook, economic uncertainties and a cautious approach to investment on the part of our customers combined with the associated weakening of demand for electrical explosion protection led to a $9.4 \%$ decline in order intake to $€ 74.4$ million in the third quarter of 2024 (Q3 2023: $€ 82.1$ million). Only in Germany was it possible to increase order volumes by almost $6 \%$ year-on-year to $€ 19.3$ million (Q3 2023: $€ 18.2$ million). By contrast, the Americas region declined by $27.3 \%$ to $€ 8.6$ million (Q3 2023: $€ 11.8$ million), the Central region by $4.0 \%$ to $€ 35.3$ million (Q3 2023: $€ 36.8$ million) and the Asia/Pacific region by $27.0 \%$ to $€ 11.1$ million (Q3 2023: € 15.3 million). Order growth was generated from the chemical industry in particular, while demand from the gas and petrochemical industries declined in the third quarter.
R. STAHL generated sales of $€ 261.4$ million in the first nine months of 2024, corresponding to growth of $8.6 \%$ compared to the same period of the previous year (8M 2023: $€ 240.7$ million). In the first quarter, there was a degree of hesitation in the sales markets due to the lower forecasts for overall economic demand, as a result of which sales amounted to $€ 84.7$ million. Significant growth was recorded in the Germany and Asia/Pacific regions. As expected, sales developed better in the second quarter than in the first quarter, as uncertainties in the markets increasingly dissipated. The third quarter was again impacted by difficult market conditions, which is why sales growth in these three months was lower than in the first two quarters. Positive momentum came mainly from the Central region and the Americas, with
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$\rightarrow$ Selected explanatory notes
$\rightarrow$ Financial Calendar and
Contact/Inspirit
growth in the double-digit percentage range. The Germany region saw a slight decline of $-1.5 \%$ in the first nine months. Sales growth in the Asia/Pacific region amounted to $4.7 \%$.
Although order intake fell by $€ 12.9$ million year-on-year to $€ 255.2$ million in the first nine months of 2024 (9M 2023: $€ 268.0$ million), which corresponds to a decline of $4.8 \%$, the figure remains at a high level. In terms of the re-
gions, Germany and the Central region showed stable development compared to the previous year. The other regions recorded a double-digit percentage decline in order intake. The lower order volume from the Asia/Pacific region in particular, with a decline of $€-8.9$ million, contributed to the generally lower order intake. Order backlog amounted to $€ 107.9$ million as of 30 September 2024, putting it $18.5 \%$ below the previous year's level (30 September 2023 € 132.4 million).
GROUP SALES BY REGION
EBITDA AND EBIT
Earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals showed a year-on-year decline of $€ 4.7$ million to $€ 8.8$ million in the third quarter of 2024 (Q3 2023: $€ 13.5$ million). This corresponds to a margin in relation to sales of $10.0 \%$ (Q3 2023: 15.7\%). At $€-0.1$ million, exceptionals were below the level of the previous year (Q3 2023: $€-0.6$ million), resulting in EBITDA of $€ 8.7$ million (Q3 2023: $€ 12.9$ million).
Total operating performance was $3.4 \%$ lower at $€ 86.2$ million in the third quarter of 2024 (Q3 2023: $€ 79.6$ million) and was thus at a level lower than sales ( $+1.7 \%$ ). While inventories of finished and unfinished goods increased by $€ 2.2$ million in the prior-year quarter, inventories fell by $€-2.0$ million as a result of the recognition of sales from orders in progress and orders awaiting
delivery. Own work capitalized, which was mainly attributable to development projects, amounted was $€ 0.8$ million or $€ 0.2$ million lower than in the previous year (Q3 2023: $€ 1.1$ million). The cost of materials from July to September was down $1.4 \%$ to $€-29.4$ million (Q3 2023: $€-29.8$ million). The cost of materials ratio decreased year-on-year to $34.1 \%$ of total operating performance (Q3 2023: 33.4\%).
Personnel expenses in the reporting period fell $0.8 \%$ to $€-33.3$ million (Q3 2023: $€-33.6$ million). Salary adjustments from collective bargaining agreements had an increasing effect on personnel expenses, while lower severance payments compared to the previous year and the reduction in time credits and vacation had the opposite effect.
The balance of other operating income and other operating expenses increased by $€ 1.9$ million to $€-14.8$ million in the third quarter of 2024 (Q3 2023: $€-12.9$ million). Other operating income decreased by $€ 0.5$ million to $€ 1.1$ million (Q3 2023: $€ 1.6$ million), mainly due to lower exchange rate
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gains from currency translation. Other operating expenses were up $€-1.4$ million to $€-15.9$ million (Q3 2023: $€-14.5$ million). In addition to higher expenses for temporary employees, expenses for external services and consulting incurred in connection with the EXcelerate strategy program increased in particular.
At $€-4.6$ million, amortization of intangible assets and depreciation of property, plant and equipment in the third quarter of 2024 were slightly higher than in the prior-year period (Q3 2023: € -4.5 million).
EBIT (earnings before interest and taxes) fell to $€ 4.1$ million in the period from July to September (Q3 2023: € 8.4 million).
In the first nine months of 2024, EBITDA pre exceptionals decreased by $€ 4.5$ million to $€ 28.1$ million (9M 2023: $€ 32.5$ million), resulting in an EBITDA margin pre exceptionals of 10.7\% (9M 2023: 13.5\%). At $€-0.4$ million, exceptionals were below the level of the previous year (9M 2023: $€-1.5$ million), resulting in EBITDA of $€ 27.7$ million (9M 2023: $€ 31.0$ million). Total operating performance increased by $5.6 \%$ to $€ 265.2$ million in the first nine months of 2024. Because there was a $€ 6.0$ million lower increase in inventories compared to the previous year (9M 2023: € 7.1 million), total operating performance developed at a slower rate than sales. At $€ 2.7$ million, own work capitalized was slightly below the prior-year level (9M 2023: $€ 3.2$ million).
At $€ 89.1$ million, the cost of materials in the first nine months was $4.7 \%$ higher than in the previous year (9M 2023: $€ 85.1$ million). The cost of materials ratio fell to $33.6 \%$ (9M 2023: $33.9 \%$ ).
Personnel costs from January to September were up $6.8 \%$ to $€ 105.1$ million (9M 2023: $€ 98.4$ million). Salary adjustments in line with collective bargaining agreements and the expansion of the workforce were the main drivers here.
The balance of other operating expenses and other operating income increased by $€ 6.9$ million to $€ 43.3$ million in the first nine months (9M 2023: $€ 36.4$ million). Other operating income decreased by $€ 0.7$ million to
$€ 5.5$ million (9M 2023: $€ 6.2$ million). By contrast, other operating expenses increased by $€ 6.1$ million, mainly due to higher costs for services and temporary work as well as consulting costs.
Amortization of intangible assets and depreciation of property, plant and equipment were slightly above the level of the previous year at $€ 13.2$ million (2023: $€ 13.0$ million).
EBITDA in the reporting period thus declined by $€ 3.5$ million to $€ 14.5$ million (9M 2023: $€ 18.0$ million).
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RECONCILIATION OF EBITDA PRE EXCEPTIONALS TO EBIT
| € million | Q3 2024 | Q3 2023 | Change | $\$ 2024$ | $\$ 2023$ | Change | in income statement contained in |
|---|---|---|---|---|---|---|---|
| EBITDA pre exceptionals ${ }^{1)}$ | 8.8 | 13.5 | $-4.7$ | 28.1 | 32.5 | $-4.5$ | |
| Exceptionals ${ }^{1)}$ | $-0.1$ | $-0.6$ | $+0.5$ | $-0.4$ | $-1.5$ | $+1.1$ | |
| Restructuring charges | $-0.1$ | $-0.6$ | $+0.5$ | $-0.4$ | $-0.7$ | $+0.3$ | |
| Severance pay | $-0.1$ | $-0.6$ | $+0.5$ | $-0.4$ | $-0.7$ | $+0.3$ | Personnel costs |
| Legal and consultancy costs | 0 | 0 | 0 | 0 | 0 | 0 | Other operating expenses |
| Other expenses | 0 | 0 | 0 | 0 | $-0.8$ | $+0.8$ | Other operating expenses |
| EBITDA | 8.7 | 12.9 | $-4.2$ | 27.7 | 31.0 | $-3.4$ | |
| Depreciation and amortization | $-4.6$ | $-4.5$ | $-0.1$ | $-13.2$ | $-13.0$ | $-0.1$ | |
| EBIT | 4.1 | 8.4 | $-4.3$ | 14.5 | 18.0 | $-3.5$ |
1) Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for designing and implementing IT projects; M\&A costs, profit and loss from deconsolidation transactions as well as profit and loss from the disposal of assets no longer required for business operations.
FINANCIAL RESULT
The financial result declined by $€-0.7$ million to $€-1.8$ million in the third quarter of 2024 (Q3 2023: € -1.2 million). Due to the loss of material influence with regard to the $25 \%$ investment in ZAVOD Goreltex, St. Petersburg, Russia, which was accounted for using the equity method in the previous year, the corresponding contribution to earnings is no longer included (Q3 2023: € 0.6 million). Interest income and interest expenses of $€-1.8$ million (Q3 2023: € -1.8 million) are included in the financial result. The slight increase in the balance is due primarily to higher loan utilization.
In the first nine months of the current financial year, the financial result of $€-5.5$ million was $€-2.8$ million lower than in the previous year ( $\$ 42023$ : $€-2.7$ million). This development is mainly due to the circumstances described above in relation to ZAVOD Goreltex, whereby the pro rata at-equity result amounted to $€ 2.2$ million in the previous year. Net interest income fell
to $€-5.5$ million and was thus $€ 0.5$ million below the level of the previous year ( $\$ 42023: €-5.0$ million).
EARNINGS BEFORE INCOME TAXES
Earnings before taxes decreased by $€-4.9$ million to $€ 2.3$ million in the third quarter (Q3 2023: € 7.3 million).
From January to September 2024, R. STAHL generated earnings before income taxes of $€ 9.0$ million which was $€-6.3$ million below the level of the previous year ( $\$ 42023: € 15.3$ million).
INCOME TAXES
Income taxes amounted to $€-0.5$ million in the third quarter of 2024 (Q3 2023: $€-1.1$ million). Of that amount, $€-0.2$ million related to effective taxes and $€-0.3$ million to deferred taxes.
In the first nine months of 2024, income taxes amounted to $€-1.3$ million (9M 2023: $€-3.4$ million). These consist of $€-1.5$ million in effective taxes and $€ 0.2$ million in deferred taxes.
NET PROFIT/EARNINGS PER SHARE
There was a $€-4.4$ million decrease in net profit to $€ 1.8$ million in the third quarter of 2024 as compared to the prior-year quarter (Q3 2023: $€ 6.2$ million). Earnings per share fell to $€ 0.28$ (Q3 2023: $€ 0.96$ ).
From January to September 2024, net profit compared with the prior-year declined by $€-4.2$ million to $€ 7.7$ million (9M 2023: $€ 11.9$ million). Earnings per share were $€ 1.18$ (9M 2023: $€ 1.85$ ).
RECONCILIATION OF EBIT TO EARNINGS PER SHARE
| € million | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| EBIT | 4.1 | 8.4 | $-4.3$ | 14.5 | 18.0 | $-3.5$ |
| Financial result | $-1.8$ | $-1.1$ | $-0.7$ | $-5.5$ | $-2.7$ | $-2.8$ |
| Earnings before income taxes | 2.3 | 7.3 | $-4.9$ | 9.0 | 15.3 | $-6.3$ |
| Income taxes | $-0.5$ | $-1.1$ | $+0.6$ | $-1.3$ | $-3.4$ | $+2.1$ |
| Net profit | 1.8 | 6.2 | $-4.4$ | 7.7 | 11.9 | $-4.2$ |
| thereof attributable to other shareholders not applicable | 0.1 | 0 | $+0.1$ | 0.1 | $-0.0$ | $+0.1$ |
| thereof attributable to shareholders of R. STAHL AG | 1.8 | 6.2 | $-4.4$ | 7.6 | 11.9 | $-4.3$ |
| Earnings per share (in €) | 0.28 | 0.96 | $-0.68$ | 1.18 | 1.85 | $-0.67$ |
| Average number of shares outstanding (weighted, in million units) | 6.44 | 6.44 | 0 | 6.44 | 6.44 | 0 |
ASSET POSITION
BALANCE SHEET STRUCTURE
The R. STAHL Group's balance sheet total increased by $€ 5.9$ million to $€ 277.3$ million as of 30 September 2024 compared to the end of the previous year (31 December 2023: € 271.4 million).
Non-current assets increased as of the balance sheet date by $€ 0.7$ million to $€ 138.5$ million (31 December 2023: $€ 137.9$ million) mainly due to an increase in property, plant and equipment, especially right-of-use assets as well as advance payments and assets under construction.
Current assets amounted to $€ 138.8$ million as of 30 September 2024 (31 December 2023: € 133.5 million), an increase of $€ 5.3$ million. While inventories fell by $€ 4.5$ million, trade receivables increased by $€ 3.3$ million and other receivables and other assets were up $€ 4.3$ million.
Non-current liabilities decreased slightly by $€ 0.2$ million to $€ 92.3$ million at the end of the reporting period (31 December 2023: € 92.5 million). Provisions for pension obligations increased by $€ 0.3$ million due to a drop in the discount rate to an average of $3.47 \%$ (31 December 2023: $3.55 \%$ ) and other liabilities increased by $€ 0.4$ million. Lease liabilities, on the other hand, fell by $€ 0.9$ million.
With current liabilities, there was a decrease of $€ 0.2$ million to $€ 111.0$ million as of 30 September 2024 compared with the end of the previous year (31 December 2023: € 111.2 million). While loan utilization increased by $€ 8.0$ million, trade payables fell by $€ 6.1$ million and other liabilities by $€$ 1.8 million.
As of 30 September, R. STAHL improved its consolidated equity by $€ 6.3$ million to $€ 74.0$ million compared to the end of the previous year (31 December 2023: $€ 67.7$ million). Net profit had a positive impact of $€ 7.7$ million. There was a negative effect on accumulated other equity from currency translation and the increase in pension obligations. The equity ratio improved to $26.7 \%$ as of 30 September 2024 (31 December 2023: $25.0 \%$ ).
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Contact/Inspirit
ASSET AND CAPITAL STRUCTURE
31 December 2023
Balance sheet total $€ 271.4$ million
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FINANCIAL POSITION
Cash flow in the third quarter of 2024 decreased by $€-2.7$ million compared to the third quarter of 2023 to $€ 9.4$ million (Q3 2023: $€ 12.1$ million). This is mainly attributable to the $€ 4.4$ million decrease in net income. Working capital was down by $€ 1.8$ million in the reporting period (Q3 2023: $€-13.0$ million) due to the reduction of inventories. The resulting cash flow from operating activities combined with other cash inflows and outflows from operating activities amounted to $€ 9.8$ million after $€-0.9$ million in the same period of the previous year. Investments in intangible assets and property, plant and equipment of $€ 3.8$ million were at the level of the previous year (Q3 2023: $€ 3.8$ million). This resulted in a cash flow from investing activities of $€-3.7$ million from June to September (Q3 2023: $€-3.8$ million). Overall, R. STAHL generated free cash flow of $€ 6.0$ million in the reporting period, which was $€ 10.8$ million above the prior-year figure (Q3 2023: $€-4.8$ million). Cash flow from financing activities was $€ 2.7$ million in the third quarter of 2024 (2023: $€-4.8$ million). From July to September, interest-bearing liabilities of $€-5.9$ million (Q3 2023: -4.4 million) and lease liabilities of $€-1.1$ million (Q3 2023: $€-1.6$ million) were repaid. This was countered by cash inflow from interest-bearing financial liabilities in the amount of $€ 4.2$ million (Q3 2023: $€ 10.8$ million).
As of 30 September 2024, the R. STAHL Group had cash and cash equivalents of $€ 14.8$ million at its disposal (31 December 2023: $€ 11.5$ million). Compared with the third quarter of 2023, cash and cash equivalents increased by $€ 3.8$ million (Q3 2023: $€ 11.1$ million).
In the first nine months of the current financial year, cash flow amounted to $€ 23.8$ million (9M 2023: $€ 28.5$ million). Working capital increased by $€ 13.4$ million in the reporting period, mainly due to the higher inventory position and higher receivables (9M 2023: $€ 28.8$ million). Cash flow from operating activities increased by $€ 9.2$ million to $€ 8.9$ million (9M 2023: $€-0.3$ million). Together with cash flow from investing activities of $€-9.8$ million (9M 2023: $€-10.0$ million), free cash flow in the first nine months of 2024 amounted to $€-1.0$ million (9M 2023: $€-10.4$ million). Due to the lower loan utilization, cash flow from financing activities amounted to $€ 4.7$ million in the first nine months of the reporting year (9M 2023: $€ 5.7$ million).
Due to the negative free cash flow - caused by the increase in working capital - and the higher level of borrowing, net debt (excluding pension provisions and lease liabilities) increased by $€ 4.8$ million to $€ 43.6$ million as of 30 September 2024 compared to the start of the year (31 December 2023: $€ 38.8$ million).
OPPORTUNITIES AND RISKS
All R. STAHL subsidiaries regularly prepare an opportunity and risk report that takes into account the opportunities and risks of the company. Managing directors are required to inform the department responsible for opportunity and risk management of any significant events, including those that occur during the quarter. The relevant statements made in the Annual Report 2023 starting on page 41 continue to apply unchanged.
OUTLOOK
We first presented our assessment of the expected development of the R. STAHL Group in the current year in detail in the Outlook of the Annual Report 2023, which was published on 17 April 2024, starting on page 78. Accordingly, based on the overall economic and sector-specific development forecast together with the full order books, we continue to expect sales growth in 2024 as compared to the previous year to be in the low single-digit percentage range to between $€ 335$ million and $€ 350$ million. Assuming cost efficiency remains the same, we expected earnings to develop in line with 2023. We see supply-side bottlenecks and further price increases only in isolated cases, if at all, which is why a stable materials ratio is expected. Against this backdrop, we expected EBITDA pre exceptionals to be between $€ 35$ million and $€ 45$ million in the 2024 financial year. We continue to expect a positive net profit that is significantly better than in 2023. Assuming a constant interest rate level for the valuation of pension obligations, we expect an increase in the equity ratio for financial year 2024. In terms of free cash flow, we forecast a mid single-digit positive million euro amount. We also expect net debt to decline.
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In the course of our third quarter reporting, we specified our forecast for EBITDA pre exceptionals and now expect EBITDA pre exceptionals to be between $€ 35$ million and $€ 40$ million.
FORECAST 2024
| $€$ million | $2024^{2)}$ | Full-year 2023 |
|---|---|---|
| Sales | 335 - 350 | 330.6 |
| EBITDA pre exceptionals ${ }^{1)}$ | 35 - 40 | 38.6 |
| Free cash flow | mid single-digit positive million euro amount |
0.3 |
| Equity ratio | Increase | $25.0 \%$ |
1) Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for designing and implementing IT projects, MBA costs, profit and loss from deconsolidation transactions as well as profit and loss from the disposal of assets no longer required for business operations.
2) Previous range for EBITDA pre exceptionals of $€ 35-€ 45$ million narrowed to $€ 35-€ 40$ million with otherwise uncharged estimates as presented in the forecast report from April 2024.
Consolidated financial statements
Consolidated financial statements
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CONSOLIDATED INCOME STATEMENT
1 January to 30 September
| € 000 | Q3 2024 | Q3 2023 | Change in \% | 9M 2024 | 9M 2023 | Change in \% |
|---|---|---|---|---|---|---|
| Sales | 87,402 | 85,963 | $+1.7$ | 261,368 | 240,693 | $+6.6$ |
| Change in finished and unfinished products | $-2,025$ | 2,238 | n/a | 1,058 | 7,097 | $-85.1$ |
| Own work capitalized | 840 | 1,050 | $-20.0$ | 2,746 | 3,206 | $-14.3$ |
| Total operating performance | 86,217 | 89,251 | $-3.4$ | 265,172 | 250,996 | $+5.6$ |
| Other operating income | 1,136 | 1,603 | $-29.1$ | 5,515 | 6,236 | $-11.6$ |
| Cost of materials | $-29,428$ | $-29,839$ | $+1.4$ | $-89,109$ | $-85,132$ | $-4.7$ |
| Personnel costs | $-33,297$ | $-33,579$ | $+0.8$ | $-105,144$ | $-98,425$ | $-6.8$ |
| Depreciation and amortization | $-4,553$ | $-4,460$ | $-2.1$ | $-13,180$ | $-13,040$ | $-1.1$ |
| Other operating expenses | $-15,927$ | $-14,539$ | $-9.5$ | $-48,768$ | $-42,628$ | $-14.4$ |
| Earnings before financial result and income taxes (EBIT) | 4,148 | 8,437 | $-50.8$ | 14,486 | 18,007 | $-10.9$ |
| Result from companies consolidated using the equity method | 0 | 641 | n/a | 0 | 2,239 | n/a |
| Investment result | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest and similar income | 90 | 22 | $>+100$ | 264 | 86 | $>+100$ |
| Interest and similar expense | $-1,902$ | $-1,818$ | $-4.6$ | $-5,749$ | $-5,044$ | $-14.0$ |
| Financial result | $-1,812$ | $-1,155$ | $-56.9$ | $-5,485$ | $-2,719$ | $<-100$ |
| Earnings before taxes | 2,336 | 7,282 | $-67.9$ | 9,001 | 15,288 | $-41.1$ |
| Income taxes | $-488$ | $-1,072$ | $+54.5$ | $-1,320$ | $-3,389$ | $+61.1$ |
| Net profit | 1,848 | 6,210 | $-70.2$ | 7,681 | 11,899 | $-35.4$ |
| thereof attributable to other shareholders | 55 | 0 | n/a | 86 | $-30$ | n/a |
| thereof attributable to shareholders of R. STAHL AG |
1,793 | 6,210 | $-71.1$ | 7,595 | 11,929 | $-36.3$ |
| Earnings per share in $€$ | 0.28 | 0.96 | $-70.8$ | 1.18 | 1.85 | $-36.2$ |
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CONSOLIDATED CASH FLOW STATEMENT
1 January to 30 September
| € 000 | |||||
|---|---|---|---|---|---|
| Net profit | 1,848 | 6,210 | $-4,362$ | 7,681 | 11,899 |
| Result of the deposal of consolidated companies | 0 | 0 | 0 | 0 | 759 |
| Depreciation, amortization and impairment of non-current assets | 4,553 | 4,460 | $+93$ | 13,180 | 13,040 |
| Changes in non-current provisions | $-104$ | $-23$ | $-81$ | $-263$ | $-169$ |
| Changes in deferred taxes | 264 | $-413$ | $+677$ | $-181$ | 943 |
| Equity valuation | 0 | 1,284 | $-1,284$ | 0 | $-314$ |
| Other income and expenses without cash flow impact | 2,874 | 597 | $+2,277$ | 3,238 | 2,297 |
| Result from the disposal of non-current assets | $-26$ | $-17$ | $-9$ | 111 | 0 |
| Cash flow | 9,409 | 12,098 | $-2,689$ | 23,766 | 28,455 |
| Changes in current provisions | 40 | 474 | $-434$ | $-1,040$ | $-290$ |
| Changes in inventories, trade receivables and other non-capex or non-financial assets | 3,354 | $-6,265$ | $+9,619$ | $-5,137$ | $-33,571$ |
| Changes in trade payables and other non-capex or non-financial liabilities not attributable to investing or financing activities | $-1,570$ | $-7,240$ | $+5,670$ | $-7,255$ | 5,068 |
| Changes in working capital | 1,824 | $-13,031$ | $+14,855$ | $-13,432$ | $-28,793$ |
| Other cash inflows and outflows from operating activities | $-1,470$ | 0 | $-1,470$ | $-1,470$ | 0 |
| Cash flow from operating activities | 9,763 | $-933$ | $+10,696$ | 8,864 | $-338$ |
| Cash outflow for capex on intangible assets | $-1,265$ | $-1,761$ | $+496$ | $-4,070$ | $-4,945$ |
| Cash outflow for capex on property, plant \& equipment | $-2,489$ | $-2,080$ | $-409$ | $-5,749$ | $-5,108$ |
| Cash inflow from disposals of property, plant \& equipment and investment property | 96 | 0 | $+96$ | 161 | 38 |
| Cash outflow for capex on non-current financial assets | $-60$ | 0 | $-60$ | $-179$ | 0 |
| Increase/decrease in current financial assets | $-3$ | 0 | $-3$ | $-3$ | 0 |
| Cash flow from investing activities | $-3,721$ | $-3,841$ | $+120$ | $-9,840$ | $-10,015$ |
| Free cash flow | 6,042 | $-4,774$ | $+10,816$ | $-976$ | $-10,353$ |
| Cash outflow for the repayment of lease liabilities | $-1,100$ | $-1,568$ | $+468$ | $-3,198$ | $-4,677$ |
| Cash inflow from interest-bearing liabilities | 4,239 | 10,774 | $-6,535$ | 14,445 | 16,364 |
| Cash outflow for repayment of interest-bearing liabilities | $-5,674$ | $-4,412$ | $-1,462$ | $-6,577$ | $-5,974$ |
| Cash flow from financing activities | $-2,735$ | 4,794 | $-7,529$ | 4,670 | 5,713 |
| Changes in cash and cash equivalents | 3,307 | 20 | $+3,287$ | 3,694 | $-4,640$ |
| Foreign exchange and valuation-related changes in cash and cash equivalents | $-241$ | 53 | $-294$ | $-412$ | $-360$ |
| Cash and cash equivalents at the beginning of the period | 11,750 | 10,987 | $+763$ | 11,534 | 16,060 |
| Cash and cash equivalents at the end of the period | 14,816 | 11,060 | $+3,756$ | 14,816 | 11,060 |
$\rightarrow$ Significant events
$\rightarrow$ Key figures
$\rightarrow$ Group management report
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Selected explanatory notes
1. ACCOUNTING IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
The interim financial statements for the R. STAHL AG Group have been prepared in accordance with International Financial Reporting Standards (IFRS), as applicable in the EU and in compliance with IAS 34 "Interim Financial Reporting'. The interim consolidated financial statements have not been audited.
2. SCOPE OF CONSOLIDATION
In addition to R. STAHL AG, the interim consolidated financial statements include 29 domestic and foreign companies for which it is possible for R. STAHL AG to exercise a controlling influence.
The scope of consolidation is unchanged over 31 December 2023.
3. ACCOUNTING AND MEASUREMENT METHODS
GENERAL INFORMATION
The interim consolidated financial statements and the comparative figures for the prior-year period were generally prepared on the basis of the accounting and measurement methods applied in the consolidated financial statements for 2023. A description of these principles is published in the notes to the consolidated financial statements 2023. This can be viewed on the Internet at www.r-stahl.com.
The Group's functional currency is the euro. Unless indicated otherwise, all amounts are stated in thousands of euros (€ 000).
The consolidated financial statements have been prepared using the cost principle. Accounting for derivative financial instruments is the exception to this rule, as these must be accounted for at fair value.
The carrying amounts of cash and cash equivalents, as well as current account loans closely approximate their fair values given the short maturity of these financial instruments. The carrying values of receivables and liabilities are based on historical costs, subject to usual trade credit terms, and also closely approximate their fair values.
The fair value of non-current liabilities is based on currently available interest rates for borrowing with the same maturity and credit rating profiles. The fair values of external liabilities is currently deviate only slightly from the carrying amounts.
To present the reliability of the valuation of financial instruments at fair value in a comparable manner, IFRS introduced a fair-value-hierarchy with the following three levels:
- Valuation on the basis of exchange price or market price for identical assets or liabilities (Level 1).
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- Valuation on the basis of exchange price or market price for similar instruments or on the basis of assessment models that are based on market observable input parameters (Level 2).
- Valuation on the basis of assessment models with significant input parameters that are not observable on the market (Level 3).
The derivative financial instruments measured at fair value of the R. STAHL Group are valued exclusively in accordance with the fair value hierarchy Level 2.
In the first nine months of 2024, there were no reclassifications among the individual fair value hierarchies.
CASH FLOW STATEMENT
In accordance with IAS 7, the cash flow statement shows how the R. STAHL Group's flow of funds developed over the reporting period.
Cash and cash equivalents shown in the cash flow statement comprise cash on hand, cheques, and credit balances with banks. The item also includes securities with original maturities of up to three months.
EARNINGS PER SHARE
Earnings per share are calculated by dividing consolidated net profit - excluding non-controlling interests - by the average number of shares. Diluted earnings per share correspond to earnings per share.
4. SALES IN ACCORDANCE WITH IFRS 15
Sales presented in the income statement includes both sales from contracts with customers and sales not within the scope of IFRS 15.
A breakdown of sales by sales source is shown below:
| $€ 000$ | 9M 2024 | 9M 2023 |
|---|---|---|
| Sales from contracts with customers | 260,607 | 239,932 |
| Rental income from investment property | 761 | 761 |
| Total | 261,368 | 240,693 |
A breakdown of sales by time of recognition is shown below:
| $€ 000$ | 9M 2024 | 9M 2023 |
|---|---|---|
| At a specific time | 254,058 | 231,022 |
| Over a specific period | 7,310 | 9,671 |
| Total | 261,368 | 240,693 |
Sales are recognized over a specified period with a high probability of occurrence within a period of one to two months.
5. FINANCIAL INSTRUMENTS
R. STAHL mainly accounts for derivative financial instruments at fair value. For this reason, a detailed reconciliation statement for the carrying amounts
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and fair values for the individual classes is not provided for reasons of materiality.
The fair values of derivative financial instruments are as follows:
6. NUMBER OF EMPLOYEES
The number of employees at the 30 September 2024 reporting date was 1,761 (31 December 2023: 1,721), not including apprentices.
7. CONTINGENT LIABILITIES AND OTHER FINANCIAL OBLIGATIONS
There were no significant changes to contingent liabilities and other financial obligations compared with 31 December 2023.
8. REPORT ON SIGNIFICANT RELATED PARTY TRANSACTIONS
There were no significant transactions with related parties in the reporting period.
9. EVENTS AFTER THE BALANCE SHEET DATE
There were no significant events after the balance sheet date.
Waldenburg, 6 November 2024
R. Stahl Aktiengesellschaft
Dr. Mathias Hallmann
Chief Executive Officer/CEO
Tobias Popp
Chief Commercial Officer/CCO
$\rightarrow$ Significant events
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Financial Calendar 2025
5 February
Hamburg Investors Day HIT
18 February
Preliminary Figures for FY 2024
25 March
Solventis Aktienforum, Frankfurt M.
10 April
Annual Report FY 2024
8 May
Quarterly Statement Q1 2025
3 June
$32^{\text {nd }}$ Annual General Meeting
7 August
Interim Report H1 2025
6 November
Quarterly Statement Q3 2025
Contact/Imprint
R. STAHL AG
Investor Relations
Judith Schäuble
T: +49 79429431396
F: +49 7942943401396
[email protected]
R. STAHL AG
Am Bahnhof 30
74638 Waldenburg (Württ.)
Germany
www.r-stahl.com